First in-depth study on adoption and use of e-commerce in Sri Lanka presented to President

The report titled ‘E-commerce: A Driver of Inclusive Growth in Sri Lanka?’ was presented to President Ranil Wickremesinghe on April 26, 2023.  

Daraz Sri Lanka Managing Director Rakhil Fernando, co-authors of the report Dr. Ganeshan Wignaraja and Anishka De Zylva and Presidential Secretariat Director International Affairs Dinouk Colombage attended
the meeting. 

This first in-depth study on the adoption and use of e-commerce in Sri Lanka during difficult economic times was launched at an event earlier in 2023, with Technology State Minister Kanaka Herath, by Daraz Sri Lanka and the Sri Lanka Association for Software Services Companies (SLASSCOM).

The presentation to the president highlighted several key findings from the study. First, the spread of e-commerce is an islandwide phenomenon, with over 50 percent of the respondents in all provinces saying that they use e-commerce to purchase goods and services. 

Second, the pandemic increased the use of e-commerce and this trend is set to deepen. Third, online sellers are mostly young and start-up businesses. 
Fourth, various obstacles hinder the use of e-commerce in the country, such as non-users lacking the requisite skills to use e-commerce, underdevelopment of digital payment systems, high cost of new smartphones and gaps in trade facilitation. 

Finally, as the Sri Lankan economy stabilises, the digital economy and e-commerce can support new jobs and boost incomes, particularly among the country’s youth. The discussion also highlighted the progress made by the neighbouring economies, particularly India and Vietnam and recommendations were made on how Sri Lanka might strive to emulate their success.

Dr. Ganeshan Wignaraja, Professorial Fellow in Economics and Trade at Gateway House, Mumbai and a Senior Research Associate at ODI Global, London, designed and co-authored the report together with Anishka De Zylva, Head of Public Policy and Corporate Affairs at Daraz Sri Lanka. The survey was conducted by NielsenIQ Sri Lanka, under the supervision of NielsenIQ Sri Lanka Country Director Therica Miyanadeniya.

The report is based on the meticulous collection of primary data through an islandwide survey of a sample population of more than 4,500 participants, undertaken between March 2022 and July 2022. The survey collected information in areas that are relevant to making business strategies and public policies covering the (i) use of e-commerce across provinces and districts, (ii) types of goods and services purchased, (iii) purchasing behaviour during the pandemic, (iv) user behaviour by characteristics, (v) types of devices and payment methods used for e-commerce purchases, (vi) factors discouraging online purchasing, (vii) use of e-commerce for selling goods and services and (vii) influence of government policy on e-commerce transactions from both a seller and consumer perspective.